MP highlights number taken out of tax altogether
New figures show that the Government has cut income tax for 2,060,000 people across the East of England, resulting in 76,000 of the lowest paid being taken out of tax altogether. The increase in the income tax personal allowance of £1,000, announced at the June 2010 Budget, came into effect last month and means that basic rate taxpayers are £200 a year better off.
Next year’s personal allowance increase of £630, will benefit a further 2,350,000 in the East of England by £126 a year, and take a further 25,000 people in the region out of tax.
John said:
“ I welcome the fact that this year alone, thanks to Government action, over 2 million people in the East of England are paying £200 less income tax this year, and 76,000 of the lowest paid in this region have been taken out of tax altogether.”
“ It is important to reward hard work and enterprise. It is therefore important to lift as many people as possible out of the income tax system and allow them to keep more of their hard-earned money.”
Notes
Parliamentary answers from the Treasury Minister David Guake have revealed the number of people in each region who will benefit from the increases in income tax personal allowances this year and next year, and also the number of people who are being taken out of tax altogether.
| Number of gainers in 2011-12
[Column 1] |
Number taken out of Income Tax in 2011-12
[Column 2] |
Number of gainers in 2012-13
[Column 3] |
Number taken out of Income Tax in 2012-13
[Column 4] |
|
| North East | 973,000 | 35,000 | 1,020,000 | 10,000 |
| North West and Merseyside | 2,520,000 | 100,000 | 2,680,000 | 28,000 |
| Yorkshire and the Humber | 1,880,000 | 74,000 | 2,000,000 | 26,000 |
| East Midlands | 1,670,000 | 59,000 | 1,820,000 | 18,000 |
| West Midlands | 1,990,000 | 71,000 | 2,140,000 | 25,000 |
| East of England | 2,060,000 | 76,000 | 2,350,000 | 25,000 |
| London | 2,700,000 | 103,000 | 3,170,000 | 30,000 |
| South East | 3,040,000 | 98,000 | 3,560,000 | 32,000 |
| South West | 1,990,000 | 71,000 | 2,170,000 | 24,000 |
| Wales | 1,070,000 | 41,000 | 1,130,000 | 10,000 |
| Scotland | 2,000,000 | 67,000 | 2,190,000 | 21,000 |
| Northern Ireland | 612,000 | 23,000 | 646,000 | 9,000 |
| Address abroad/unknown | 142,000 | 11,000 | 157,000 | 3,000 |
| All | 22,600,000 | 830,000 | 25,000,000 | 260,000 |
He wrote that:
‘The June 2010 Budget announced a £1,000 cash increase in the personal allowance for under 65s to £7,475 in 2011-12 (£820 above the previous Government’s plans), with the benefits focused on individuals on low and middle incomes through accompanying changes to the basic rate limit and national insurance upper earnings and profit limits. For basic rate taxpayers aged under 65 this represents a £164 real terms and £200 cash benefit.’
And:
‘The 2011 Budget announced a £630 cash increase in the personal allowance for under 65s to £8,105 in 2012-13 (£240 above indexation), with an equivalent reduction in the basic rate limit to leave the higher rate threshold unchanged. For taxpayers benefiting from the personal allowance increase this represents a £48 real terms and £126 cash benefit. Those on incomes above £116,210 will pay £48 more in real terms and £126 in cash terms.’
(David Gauke, Hansard, 13 May 2011, Col. 1392WA and 1393WA).
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